Google gets in on virtual reality game market
Launch of company’s Daydream View headset to serve as gateway to upgraded systems in future
Virtual reality headsets went from pre-release hype to actual consumer product this year, with research showing that video game players made up the majority of early buyers.
Google tries to tap into that early adopter market this week with its Daydream View, a $99 VR headset that works with the company’s just-released Pixel smartphone.
Similar to Samsung’s Gear VR, Daydream is a lowtech, screenless viewer that uses the power of the phone to provide an immersive experience.
Google’s device is only the latest move in a sector that’s had sky-high forecasts for growth potential. Analyst firm Strategy Analytics predicts that VR would generate sales of $895 million (U.S.) worldwide this year.
Of that market, higher-priced products like the $800 Oculus Rift and HTC Vive, which costs $1,149, would only make up 13 per cent of the market, but account for 77 per cent spent on headsets this year.
And it’s a very particular slice of the gaming market that is interested in buying these immersive headsets.
"One of our main findings is that VR buyers are shockingly young and disproportionately from high income homes, compared to the average gamer," said Lewis Ward, research director, gaming and VR/AR at IDC, a market research firm.
As an example, 25 per cent of buyers of Samsung’s Gear VR were 13 to 17 years old, and a third were from 24 to 34 years of age.
According to the Entertainment Software Association, the average gamer is now 35.
Most Gear buyers were also from higher income households and largely male, which is perhaps not surprising given the cost of the devices.
Ward put out a survey in the third quarter of 2016 (before Sony’s PSVR was released, or Google’s Daydream had been announced) which defines the category in three main segments.
The first are VR-mounted headsets tethered to a computer (like the Oculus Rift, HTC Vive and PSVR).
The second category is the standalone, which are headsets with the computer built-in (Toronto-based Sulon’s oncoming Q is an example). These devices are still getting off the ground.
Then there are the screenless viewers, of which the Gear VR is the most popular. Ward said his research showed there were roughly 650,000 screenless viewers sold in North America, with the majority being Gear VRs.
“It’s not a massive number, but something that’s becoming a significant avenue for exploring new types of content and experiences, including games," said Ward.
"The Rift and Vive which are attached to PCs — we estimate that there are around 380,000 in the U.S. between the two of them."
Ward says this is in line with expectations, as mobile VR offered by the screenless units is believed to serve as gateway for people who may eventually upgrade to one of the more expensive VR systems.
Not surprisingly, respondents said playing games and watching 360-degree videos and photos were the main uses for the headsets.
Though there is untapped potential, VR faces an uphill climb: Games to play The software libraries are still filling out for these devices. There have already been some controversies about exclusives: gamers want highprofile games to work across competing hardware, but at this early stage the headset makers are funding developers to jump-start the market, and need to recoup that investment with exclusives.
The other issue is that while there have been some well-reviewed games — like Thumper, Elite: Dangerous and Job Simulator — at this early stage, many others are little more than tech demos and there really isn’t a killer app yet.
Batman Arkham VR, for example, has been well-reviewed, but only offers an hour-long experience at a cost of $30. Acostly escape from reality It’s early, and like most early technologies, VR is an expensive proposition, that at its cheapest costs around $1,000. For the mobile VR experience, it’s the phones that are expensive — Google’s Pixel starts at $900.
For the tethered headsets, you also need a console or high-end PC, costing as much as $2,000. In terms of games, the prices run the gamut, with mobile choices under $10 while PC and console games run in a wide range from $20 to $50 on average. Acrowded gadget holiday season Gamers have a lot of options this holiday season, as both Microsoft and Sony have released updates to their flagship consoles, with the Xbox One S and PS4 Pro respectively.
As well, Nintendo is launching the retro NES Classic edition, and there is the usual onslaught of releases from well known game franchises, competing for gamers’ wallets and time.